Darden Falls On Q4 Earnings Miss, Raises Dividend

By Teresa Rivas

The operator of the Olive Garden, LongHorn Steakhouse and the Capital Grille reported earnings of $133.2 million, or $1.01 a share, down from $1.15 a share in the year-ago period. Revenue rose 11% to $2.3 billion. Analysts had forecast a profit of $1.03 a share on $2.27 billion in sales.

However, the new year looked brighter, with Darden calling for earnings to rise between 4% and 6% on a 6% to 8% increase in revenue.

Same-store sales in the quarter rose 1% at Olive Garden, the company’s largest chain. Darden has been increasingly turning to its higher-end restaurants, like Bahama Breeze and Capital Grill, for growth, as Americans with more modest incomes have been pulling back and the company has been trying to emphasize its value with affordable menu options.

The company also announced a five-cent increase in its quarterly dividend, to 55 cents.

Darden’s stock has risen less than 2% in the past year, trailing the S&P 500’s 20% gain.

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